1. Set up a steamer apparatus and steam squash for 10 minutes. Place cashews and water in food processor, and let sit while you steam the squash.
2. Once squash has steamed and is really, really soft, let it cool for 1-2 minutes, and transfer to food processor.
3. Add the rest of the ingredients and puree until very smooth, around 5 minutes, or longer if necessary. It should already be really rather thick.
4. Transfer to a small quart-sized saucepan, bring to a boil for a minute (it won't take but 1-2 minutes), and remove from heat. Now your sauce is ready to use!
Source of recipe: I came up with this recipe when trying to use up some squash: http://healthykitschyvegan.wordpress.com/2011/07/30/im-gonna-squash-your...